Ford Motor is significantly cutting production of its highly profitable F-150 pickup trucks due to an ongoing semiconductor chip shortage plaguing the global automotive industry.
The automaker said Thursday that its Dearborn Truck Plant in Michigan will drop to one shift from three for a week beginning Monday, while truck production at its Kansas City Assembly Plant in Missouri will drop to two shifts from three. Ford spokeswoman Kelli Felker said both plants are expected to return to three shifts the week of Feb. 15.
“We are working closely with suppliers to address potential production constraints tied to the global semiconductor shortage and working to prioritize key vehicle lines for production, making the most of our semiconductor allocation,” she said in an emailed statement.
Ford’s confirmed plans come a day after General Motors said it would take down production next week at four assembly plants in Fairfax, Kansas; Ingersoll, Ont., and San Luis Potosi, Mexico. GM will also run a plant in South Korea at half capacity that week.
Shares of Ford appeared to be unaffected by the cuts, trading up by about three per cent during intraday trading late Thursday morning. The automaker is scheduled to report its fourth-quarter earnings and give guidance for 2021 after the market closes Thursday.
The automaker said Thursday that its Dearborn Truck Plant in Michigan will drop to one shift from three for a week beginning Monday, while truck production at its Kansas City Assembly Plant in Missouri will drop to two shifts from three. Ford spokeswoman Kelli Felker said both plants are expected to return to three shifts the week of Feb. 15.
“We are working closely with suppliers to address potential production constraints tied to the global semiconductor shortage and working to prioritize key vehicle lines for production, making the most of our semiconductor allocation,” she said in an emailed statement.
Ford’s confirmed plans come a day after General Motors said it would take down production next week at four assembly plants in Fairfax, Kansas; Ingersoll, Ont., and San Luis Potosi, Mexico. GM will also run a plant in South Korea at half capacity that week.
Shares of Ford appeared to be unaffected by the cuts, trading up by about three per cent during intraday trading late Thursday morning. The automaker is scheduled to report its fourth-quarter earnings and give guidance for 2021 after the market closes Thursday.
Automakers and parts suppliers began warning of a semiconductor shortage late last year after demand for vehicles rebounded stronger than expected following a two-month shutdown of production plants due to the coronavirus pandemic.
Semiconductors are extremely important components of new vehicles for areas ranging from infotainment systems to more traditional parts such as power steering.
(CNBC)
Semiconductors are extremely important components of new vehicles for areas ranging from infotainment systems to more traditional parts such as power steering.
(CNBC)
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